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Question 4 If the Fed buys $1 million of bonds from the First National Bank, the required reserve ratio is 10% and an additional 10%

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Question 4 If the Fed buys $1 million of bonds from the First National Bank, the required reserve ratio is 10% and an additional 10% of any deposit is held as excess reserves, what is the total increase in checkable deposits? (Hint: Use T-accounts to show what happens at each step of the multiple expansion process.)

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